Q2FY15 Highlights

  • Gross revenues at Rs. 24,194 crore, vs Rs. 27,392 crore in Q2FY14
  • Throughput at 5.04 MMT; refinery consistently operating above its rated capacity 
  • Current Price Gross Refining Margin (CP GRM) at $7.03/bbl Vs $6.93/bbl in Q2FY14
  • EBITDA at Rs.1,025 crore vs Rs.1,033 crore in Q2FY14
  • PAT at Rs.226 crore Vs a loss of  Rs.71 crore in Q2FY14
  • EOL makes entry into Global A List of CDP Climate Performance Leadership Index (CPLI) 2014; is the only Indian Oil & Gas company in the list

Mumbai: Essar Oil, India's second largest private refiner, today reported gross revenues of Rs.24,194 crore for the July - September 2014 (Q2FY15) quarter, which was down 12% as compared Rs.27,392 crore reported in Q2FY14. The dip in revenues is mainly due to lower crude oil price during the quarter.

Current Price Gross Refining Margin (CP GRM) for Q2FY15 was $7.03/bbl, as compared to $6.93/bbl in Q2FY14.

EBITDA during the quarter stands at Rs.1,025 crore, against Rs.1,033 crore in Q2FY14. Profit after Tax (PAT) for the quarter was at Rs.226 crore against a loss after tax of Rs.71 crore during the same period last year.

During the quarter, Vadinar Refinery processed 5.04 MMT of crude, vs 5.18 MMT during the same period last year. Throughput during the quarter was lower by 3% due to seven days planned shutdown and five days of capacity slowdown.

Talking on the results, Mr. L.K. Gupta, Managing Director and CEO, Essar Oil, said: "Inspite of a partial planned shutdown of seven days, Vadinar Refinery's throughput continues to be above its rated capacity, demonstrating strong ability of the company to sweat its assets in the most optimized yet safe manner. We remain focused towards achieving operational and performance excellence."

Mr. Suresh Jain, CFO, Essar Oil said, " Financials for the quarter were impacted on account of decline in cracks of key products and weakness in oil prices which is partly offset by operational efficiency and reduction in interest and financial charges due to part dollarization of our debt. We expect to complete our balance dollarization programme by end of FY15 to further reduce our overall cost of debt."

Operating and Financial Performance: Key Indicators

Q2FY15    
Q2FY14
% change 
H1FY15
H1FY14
% change
Throughput (in MMT)
5.04 
5.18 
(3) 
10.18 
10.32 
(1)
Gross Revenue (in Rs crore) 
24,194 
27,392 
(12) 
51,511 
52,113 
(1)
CP GRM (in $/bbl) 
7.03 
6.93 
1
 8.05 
6.97
15
EBIDTA (in Rs crore)*
1,025
1,033 
(1) 
2,597 
1,447 
79
Profit After Tax (in Rs crore) 
226
(71)
- 
910
(934)
- 

**  EBIDTA includes forex variations

Marketing Operations
During the quarter, Essar Oil realized 52% of its revenues from the domestic market against 44% in Q2FY14.  Essar Oil has over 1,400 retail outlets across the nation, with about 300 in various stages of commissioning. With the government announcing deregulation of diesel prices, Essar Oil has begun retail sales of diesel through its retail outlets.

Exploration & Production
At our flagship Raniganj CBM block, current gas production is around 250,000 standard cubic metres per day (scm/d), which is being sold locally through pipeline and cascades. We have drilled 229 wells and laid requisite infrastructure including pipelines to supply CBM Gas to end consumers. Three Gas Gathering Stations (GGS) are complete and one more is under construction. 

CPLI 2014
In its best performance till date, EOL, with a score of 98 out of possible 100,has moved from National to Global top performer category this year in the CDP Climate Performance Leadership Index (CPLI) 2014 and is ranked in the Global league of A-List companies. From India, EOL it is the only Chemical / Energy / Oil & Gas sector company on the list.

---ENDS---

About Essar Oil
Essar Oil is a fully integrated oil & gas company of international scale with strong presence across the hydrocarbon value chain from exploration & production to refining and oil retail. Essar Oil owns India's second largest single site refinery having a capacity of 20 MMTPA and complexity of 11.8, which is amongst the highest globally. It has a portfolio of onshore and offshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves & resources. There are more than 1,700 Essar-branded oil retail outlets in various parts of India.

About Essar
Essar is a US$ 39-billion multinational corporation with investments in Steel, Energy, Infrastructure and Services. With operations in more than 29 countries, it employs over 60,000 people.

Media Contacts:
Rabin Ghosh, Corporate Communications, (Mumbai)
Tel: 91 99 301 36268, email: rabin.ghosh@essar.com

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